Asian Tastes Stimulates Yum Brands Q4 Profits Growth

KFC as well as Pizza Hut gross sales in China powered a 19% surge in fourth-quarter profits at the fast-food chains’ Brands (YUM).

The fast-food icon, reported profits of $1.75 for each share. Profits rose 15%, marginally above forecasts. China headed the road, where sales at cafes start over a year increased 21%, against. 3% expansion for the remainder of the organization’s worldwide cafes, and only 1% increase in the United States of America.

The corporation launched 656 cafes in China during the year. International restaurant profit margins dropped 1.1% to 14.3%, mainly from increased food prices. The organization reaffirmed 2012 direction with a minimum of 10% EPS increase. Shares closed lower 1% however rose 2.4% in after-hours trading.

In addition to expansion in China, the organization applauded growth in various other growing areas. It currently receives 50% of operating earnings from those regions. Its sandwich shop Panera Bread’s (PNRA) as well as sports bar chain Buffalo Wild Wings’ (BWLD) will announce results on Tuesday. None has Chinese operations for expansion.

Analysts predict Panera to reveal a 17.4% profits rise to $1.42 per share. Buffalo Wild Wings’ profits are predicted to rise 22%. Its shares closed 2% lower.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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